BILL NUMBER: AB 522	CHAPTERED  09/29/00

	CHAPTER   900
	FILED WITH SECRETARY OF STATE   SEPTEMBER 29, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE ASSEMBLY   AUGUST 29, 2000
	PASSED THE SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 24, 2000
	AMENDED IN ASSEMBLY   APRIL 13, 1999

INTRODUCED BY   Assembly Member Wayne
   (Coauthor:  Senator O'Connell)

                        FEBRUARY 18, 1999

   An act to amend Sections 37002, 37005, 37006, 37011, 37012, 37013,
37015, 37016, 37020, and 37021 of, and to add Sections 37023, 37024,
and 37025 to, the Public Resources Code, relating to conservation.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 522, Wayne.  Natural Heritage Preservation Tax Credit Act of
2000.
   Chapter 113 of the Statutes of 2000 enacted the Natural Heritage
Preservation Tax Credit Act of 2000 which authorizes the donation of
property, meeting specified criteria, to the state, any local
government, or any designated nonprofit organization in return for a
tax credit on a portion of the value of the property.
   This bill would make various technical changes to that act.  The
bill would also incorporate provisions into that act relating to
public access to the donated property, and would authorize the city,
county, or city and county in which the property is located to
request the Director of Finance to disapprove the acceptance of the
property and would require the director to provide a written
explanation of his or her decision.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 37002 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37002.  As used in this division, the following terms have the
following meanings:
   (a) "Approval" or "approval for acceptance" means the board's
approval of the granting of a tax credit for a donation of property
pursuant to the program.
   (b) "Board" means the Wildlife Conservation Board created pursuant
to Article 2 (commencing with Section 1320) of Chapter 4 of Division
20 of the Fish and Game Code.
   (c) "Conservation easement" means a conservation easement, as
defined by Section 815.1 of the Civil Code, that is contributed in
perpetuity.
   (d) "Department" means any entity created by statute within the
Resources Agency and authorized to hold title to land.
   (e) "Designated nonprofit organization" means a nonprofit
organization qualified under Section 501(c)(3) of Title 26 of the
United States Code that has as a principal purpose the conservation
of land and water resources and that is designated by a local
government or a department to accept property pursuant to this
division in lieu of the local government or a department.  In order
to be eligible to receive a donation of property pursuant to this
division, a nonprofit organization shall have experience in land
conservation.
   (f) "Donee" means any of the following:
   (1) A department to which a donor has applied to donate property.

   (2) A local government that has filed a joint application with a
donor requesting approval of a donation of property to that local
government.
   (3) A designated nonprofit organization.
   (g) "Donor" means a property owner that donates, or submits an
application to donate, property pursuant to the program.
   (h) "Local government" means any city, county, city and county, or
any district, as defined in Section 5902 or in Division 26
(commencing with Section 35100), or any joint powers authority made
up of one or more of those entities or those entities and
departments.
   (i) "Program" means the Natural Heritage Preservation Tax Credit
Program authorized by this division.
   (j) "Property" means any real property, and any perpetual interest
therein, including land, conservation easements, and land containing
water rights, as well as water rights.
   (k) "Secretary" means the Secretary of the Resources Agency.
  SEC. 2.  Section 37005 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37005.  The Wildlife Conservation Board shall implement the
program.  The board may request staff services from any department
that submits an application and a proposal for a donation of property
to the board.
  SEC. 3.  Section 37006 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37006.  (a) Under the program, upon approval by the board, a donor
may contribute qualified property to a donee and receive a tax
credit for a portion of the value of the property, as provided in
Sections 17053.30 and 23630 of the Revenue and Taxation Code.
   (b) The board shall adopt guidelines or regulations to implement
the program, including procedures for applications submitted pursuant
to Chapter 4 (commencing with Section 37010) and for the evaluation
of properties proposed to be contributed pursuant to the program.
Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3
of Title 2 of the Government Code does not apply to the guidelines or
regulations adopted pursuant to this section.
  SEC. 4.  Section 37011 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37011.  At a minimum, each application shall contain all of the
following:
   (a) The identification of the donor and donee.
   (b) A description of the property, including documentation of how
the property meets the criteria and qualifies for acceptance under
the program.
   (c) A property appraisal meeting the requirements of Section 170
of Title 26 of the United States Code, setting forth the fair market
value of the property.
   (d) (1) A certification by the donor that the donor received no
other valuable consideration for the donation of property.
   (2) A certification by the donor that the contribution was not,
and is not, required to satisfy a condition imposed upon the donor by
any lease, permit, license, certificate, or other entitlement for
use issued by one or more public agencies, including, but not limited
to, the mitigation of significant effects on the environment of a
project pursuant to an approved environmental impact report or
mitigated negative declaration required pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section
21000)).
   (e) A certification by the donor that the application discloses
any known or suspected environmental conditions associated with the
property.
  SEC. 5.  Section 37012 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37012.  (a) Each donee shall evaluate applications submitted to it
and prepare a plan for the board that sets forth the donee's
priorities for acquisition of property that qualifies under the
program.  Consistent with the criteria established for the program,
each donee may use its own priority lists and procedures in
determining which properties or types of properties shall be given
priority.
   (b) Each donee or the board may request that the applicant supply
further information reasonably necessary to allow the donee or the
board to evaluate the proposed donation.
   (c) The department may accept contributions of money from any
taxpayer to pay or reimburse the costs of appraisal, escrow, title,
and other transaction costs associated with the contribution of any
particular property or set of properties, including any environmental
assessments required by the department, and the costs of preparing
any necessary management plan for the property or set of properties.

   (d) Prior to acquiring an easement or other interest in land
pursuant to this division, a public hearing shall be held by the
donee, if the donee is a public agency, or by the board if the donee
is a designated nonprofit organization, in the local community.
Notice shall be given by the donee or the board to the county board
of supervisors of the affected county, adjacent landowners, affected
water districts, local municipalities, and other interested parties,
as determined by the donee or the board.
   (e) When submitting a donation of qualified property to the board
for final approval, the donee shall provide the board with the fair
market value of the property proposed for acceptance, based on
appraisals that have been reviewed and approved by the Department of
General Services.
  SEC. 6.  Section 37013 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37013.  The board shall provide a list to the Joint Legislative
Budget Committee and the Franchise Tax Board, in the form and manner
determined by the Franchise Tax Board, of the names, taxpayer
identification numbers, including taxpayer identification numbers of
each partner or shareholder, as applicable, a legal description of
the donated property, and the total amount of the tax credit approved
for each donation.
  SEC. 7.  Section 37015 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37015.  The board shall approve only contributions of properties
that meet one or more of the following criteria:
   (a) The property will help meet the goals of a habitat
conservation plan, multispecies conservation plan, natural community
conservation plan, or any other similar plan subsequently authorized
by statute that is designed to benefit native species of plants,
including, but not limited to, protecting forests, old growth trees,
or oak woodlands, and animals and development.  In proposing and
approving the acceptance of contributed property pursuant to this
subdivision, the recovery benefits for listed species, the habitat
value of the property, the value of the property as a wildlife
corridor, and similar habitat-related considerations shall be the
criteria on which the acceptance is based.
   (b) The property will provide corridors or reserves for native
plants and wildlife that will help improve the recovery possibilities
of listed species and increase the chances that the species will
recover sufficiently to be eligible to be removed from the list, or
will help avoid the listing of species pursuant to the California
Endangered Species Act (Chapter 1.5 (commencing with Section 2050) of
Division 3 of the Fish and Game Code) or the federal Endangered
Species Act (16 U.S.C. Sec. 1531 et seq.), or protect wetlands,
waterfowl habitat, or river or stream corridors, or promote the
biological viability of important California species.
   (c) The property interest is a perpetual conservation easement
over agricultural land, or is a permanent contribution of
agricultural land, that is threatened by development and is located
in an unincorporated area certified by the secretary to be zoned for
agricultural use by the county.  Property accepted pursuant to this
subdivision shall be accepted pursuant to the California Farmland
Conservancy Program Act established by Division 10.2 (commencing with
Section 10200), pursuant to the agricultural conservation program of
the Coastal Conservancy, or pursuant to the Bay Area Conservancy
Program established pursuant to Chapter 4.5 (commencing with Section
31160) of Division 21.
   (d) (1) The property interest is a water right, or land with an
associated water right, and the contribution of the property will
help improve the chances of recovery of a listed species, will reduce
the likelihood that any species of fish or other aquatic organism
will be listed pursuant to the California Endangered Species Act
(Chapter 1.5 (commencing with Section 2050) of Division 3 of the Fish
and Game Code)) or the federal Endangered Species Act (16 U.S.C.
Sec. 1531 et seq.), will improve the protection of listed species, or
will improve the viability and health of fish species of economic
importance to the state.  The donee receiving the water right, or
land with an associated water right, shall ensure that it shall
retain title to the water right, and that the water shall be used to
fulfill the purposes for which the water right or land associated
with a water right is being accepted.
   (2) Any contribution of a water right that includes a change in
the point of diversion, place of use, or purpose of use may be made
only if the proposed change will not injure any legal user of the
water involved and is made in accordance with either Chapter 10
(commencing with Section 1700), or Chapter 10.5 (commencing with
Section 1725), of Part 2 of Division 2 of the Water Code.
   (e) The property will be used as a park or open space or will
augment public access to or enjoyment of existing regional or local
park, beach, or open-space facilities, or will preserve
archaeological resources.
  SEC. 8.  Section 37016 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37016.  (a) The board shall grant approval of a proposed
contribution of property under the program only upon a determination
that:
   (1) (A) The donation of property satisfies the requirements for a
qualified contribution pursuant to Section 170 of Title 26 of the
United States Code.  If only a portion (either an undivided
fractional interest in the entire property or one or more discrete
parcels) of a proposed conveyance of property satisfies the
requirements of Section 170 of Title 26 of the United States Code, or
if the property is sold for less than fair market value, only that
portion, or the amount representing the difference between the amount
paid by the donee and the fair market value, shall be eligible for
the tax credit, to the extent permitted by Section 170(h) of Title 26
of the United States Code.  The board may segregate eligible and
ineligible interests in property proposed to be contributed pursuant
to this division.  The donor shall receive no other valuable
consideration for the donation of property subject to the tax credit.

   (B) For purposes of this division, if the property is proposed to
be donated to satisfy a condition imposed upon the donor by any
lease, permit, license, certificate, or other entitlement for use
issued by one or more public agencies, including, but not limited to,
the mitigation of significant effects on the environment of a
project pursuant to an approved environmental impact report or
mitigated negative declaration required pursuant to the California
Environmental Quality Act (Division 13 (commencing with Section
21000)), that property shall not qualify for the credit provided in
Section 17053.30 or 23630 of the Revenue and Taxation Code.
   (2) There has been no release or threatened release of a hazardous
material on the property, unless all of the following occur:
   (i) A final remedy in response to the release has been approved by
the Department of Toxic Substances Control pursuant to Chapter 6.5
(commencing with Section 25100) of, Chapter 6.8 (commencing with
Section 25300) of, or Chapter 6.85 (commencing with Section 25396)
of, Division 20 of the Health and Safety Code, or the appropriate
California regional water quality control board pursuant to Chapter
6.7 (commencing with Section 25280) of Division 20 of the Health and
Safety Code.
   (ii) The donor or donee have agreed to implement the final remedy
approved pursuant to clause (i).
   (iii) The donor or donee have agreed to fund and have made
adequate funding available to pay for the response action, as defined
by Section 25323.3 of the Health and Safety Code.
   (b) Notwithstanding paragraph (2) of subdivision (a), a donation
of property containing hazardous materials may be accepted under the
program without satisfying the requirements of paragraph (2) of
subdivision (a) if the donee determines, based on written findings
from the Department of Toxic Substances Control and the California
regional water quality control board with jurisdiction over the
property, that the hazardous materials present will pose no
substantial risk to human health or the environment and no
substantial risk of liability on the donee under the conditions under
which the property will be used.  The Department of Toxic Substances
Control and the California regional water quality control board with
jurisdiction over the property shall carry out their normal due
diligence when developing the written findings that will be the basis
for the written determination regarding the presence and risk of
toxic materials on the property by the Department of Toxic Substances
Control or the regional board, whichever is applicable.  As used in
this subdivision, "hazardous materials" has the same meaning as
contained in subdivision (d) of Section 25260 of the Health and
Safety Code.
  SEC. 9.  Section 37020 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37020.  (a) Nothing in this division authorizes or increases the
authority of any state or local public agency to use eminent domain
to acquire private property.
   (b) Nothing in this division diminishes existing land or water
rights held by easement holders in any property proposed for
donation.
  SEC. 10.  Section 37021 of the Public Resources Code, as added by
Chapter 113 of the Statutes of 2000, is amended to read:
   37021.  (a) If any property approved for acceptance pursuant to
this division is later transferred by the donee, the use of the
property shall be restricted by deed to the conservation purposes for
which the property was contributed pursuant to the program.  If the
board determines that the conservation purposes for which the
property was contributed can no longer be achieved due to
significantly changed circumstances beyond the control of the donee
that accepted the property, the proceeds of the sale shall be used by
the donee that accepted the property to acquire land in California
of equal or greater value and comparable public resources values, as
determined by the board.  The land acquired shall meet the criteria
of Section 37015.  Nothing in this division prohibits the transfer of
donated property to a nonprofit organization that is qualified to
manage the property for the purposes intended by this division, if
the terms of this section are met.  Any local government or nonprofit
organization seeking to sell land pursuant to this subdivision shall
first obtain the approval of the board.
   (b) Other than as provided by subdivision (a), property approved
for acceptance pursuant to this division shall be used only for
purposes consistent with Section 37015.
   (c) (1) If any unauthorized use is made of the property after the
property is donated to a local government or nonprofit organization
pursuant to this program, the local government or nonprofit
organization shall seek to terminate the unauthorized use and restore
the conservation benefits for which the property was contributed.
If the board determines that the unauthorized use has not been
terminated and the conservation benefits fully restored within a
reasonable period of time, the fee title owner of the property shall
pay to the state the greater of the following:
   (A) The fair market value of the property based on appraisals when
accepted by the board.
   (B) The fair market value of the property based on appraisals at
the time of and based on the unauthorized use of the property.
   (2) The department that is the donee or the board may seek
injunctive relief to prevent the unauthorized use of the property, or
may assume ownership or management of the property to assure that it
is used in the manner originally authorized.
   (d) The board shall develop a process to monitor the uses of any
land that a local government or nonprofit organization receives
pursuant to this division in order to ensure those uses are in
conformance with the purposes for which the property is accepted.
  SEC. 11.  Section 37023 is added to the Public Resources Code, to
read:
   37023.  The donee shall allow public access to the property to the
extent that public access is consistent with the purposes for which
the property is accepted.  Before providing public access to the
property, the donee shall develop a plan that minimizes the impact of
public access on adjacent landowners in order to avoid infringement
on the customary husbandry practices on adjacent or nearby
agricultural or timber operations and that establishes a setback or
buffer area, as necessary.  This section does not require access to
privately owned lands for which a conservation easement is
contributed pursuant to this division unless the conservation
easement provides for public access.
  SEC. 12.  Section 37024 is added to the Public Resources Code, to
read:
   37024.  If the city, county, or city and county in which the
property is located objects to acceptance of the property, the city,
county, or city and county, as appropriate, may request the Director
of Finance to disapprove the acceptance of the property.  These
objections may relate to the city's, county's, or city and county's
conservation and development policies and their general plans, the
efficient use and delivery of infrastructure, and the potential loss
of property tax revenue.  The Director of Finance may disapprove
acceptance after reviewing the objections of the city, county, or
city and county.  The Director of Finance shall provide a written
explanation for his or her decision to the affected city, county, or
city and county.
  SEC. 13.  Section 37025 is added to the Public Resources Code, to
read:
   37025.  Any donee accepting property pursuant to the program shall
own and maintain any setback or buffer area that may be necessary
for the use of that property in accordance with this division, in
order to avoid infringement on the customary husbandry practices on
adjacent or nearby agricultural or timber operations.
